nordnet q2 2010 report
DESCRIPTION
presentation material for nordnet's interim report january - june 2010: "leading-edge mobile bank services"TRANSCRIPT
» leading-edge mobile bank services «
Interim report January - June 2010
Financial highlights (January-June)
net savings
6.7 (5.9)
billion Swedish kronor
total savings capital
91.2 (53.9)
billion Swedish kronor
net commission
34 (29)
Swedish kronor per trade
number of active accounts
316,000 (249,600)
number of trades
8,646,700 (7,666,200)
cost coverage
61 (49)
percent
• Operating income increased by 54 percent to SEK 529.0 million (343.1)
• Profit after tax increased by 52 percent to SEK 107.7 million (70.9)
• Earnings per share before dilution were up 49 percent to SEK 0.64 (0.43)
General highlights (April-June)
• Focus on banking services
• Savings accounts launched in Sweden and Finland
• iPhone app v.2 and new Android app
• Trade record in May
• Acquisition of Konsumentkredit
• Successful integration of eQ
Operating profit+7% compared to Q2 2009
Number of active accountsAdjusted during Q2 in connection with eQ integration
Total number of customers 275,800
Net savingsTurbulent markets make savers more cautious
Savings capital and accounts distribution
(SEKbn) (#)
Market shares January – JuneAlgorithmic trading players continue to grow
Broker Number of trades Market share Number of trades Market share
January-June 2010 January-June 2009
1 SEB Enskilda 8,030,377 8.58% 5,733,832 8.12%
2 Nordnet 6,896,195 7.37% 6,312,374 8.94%
3 Credit Suisse 6,177,103 6.60% 3,091,126 4.38%
4 Handelsbanken 4,546,885 4.86% 3,353,140 4.75%
5 Morgan Stanley 4,291,825 4.59% 3,854,592 5.46%
6 Av anza Bank 4,001,165 4.28% 3,694,439 5.23%
7 Deutsche Bank 3,938,630 4.21% 3,217,904 4.56%
8 Citadel Securities 3,815,612 4.08% 172,282 0.24%
9 Fortis Bank 3,086,236 3.30% 2 0.00%
10 Swedbank 3,044,807 3.25% 1,809,693 2.56%
93,565,152 100% 70,586,824 100%Total the Nordic Exchanges
Market shares (Trades)
*2009 figure does not include eQ
Source: Official statistics from the various stock exchanges
Market shares (Turnover)
*2009 figure does not include eQ
Source: Official statistics from the various stock exchanges
3 months 3 months 6 months 6 months
Consolidated Income Statement (SEK million) Apr-Jun 2010 Apr-Jun 2009 Jan-Jun 2010 Jan-Jun 2009
Net interest income 77.8 40.9 148.9 83.2
Net commission income 159.7 131.8 324.0 231.0
Other income 18.8 18.3 56.2 28.9
Total operating income 256.3 191.0 529.0 343.1
General administrativ e expenses -149.1 -100.3 -308.7 -193.4
Depreciation and amortization -20.3 -15.9 -48.0 -32.4
Other operating expenses -22.5 -14.9 -37.2 -24.4
Total operating expenses -191.9 -131.1 -393.9 -250.2
Profit before credit losses 64.4 59.9 135.1 92.9
Net credit losses 0.0 0.1 0.0 -0.4
Operating profit 64.4 60.0 135.1 92.5
Tax on profit for the period -9.6 -14.4 -27.4 -21.6
Profit for the period 54.8 45.6 107.7 70.9
Financial development per quarter - Group (SEK million) Q2 10 Q1 10 Q4 09 Q3 09 Q2 09 Q1 09 Q4 08 Q3 08
Operating income 256.3 272.7 265.9 258.2 191.0 152.1 164.0 170.0
Operating expenses and depreciation -192.0 -196.6 -227.3 -184.4 -131.1 -119.1 -116.0 -110.7
Net credit losses 0.0 0.0 -3.9 -1.9 0.1 -0.5 -7.0 -2.3
Profit before goodwill and non-recurring items 64.3 76.1 34.6 71.9 60.0 32.5 41.0 57.0
Goodwill and non-recurring items 0.1 -5.5 0.0 53.8 - - -4.6 -
Operating profit 64.4 70.6 34.6 125.7 60.0 32.5 36.4 57.0
New accounts 9,400 9,200 4,100 54,900 11,000 7,700 12,600 218,300
Net commission per trade (SEK) 35 32 34 35 31 27 27 32
Number of trades per day 69,300 69,000 63,400 62,900 64,100 56,600 61,400 40,700
Consolidated Statement of Financial Position (SEK million) 30/6/2010 30/6/2009 31/12/2009
Loans to credit institutions 855 3,479 2,384
Loans to the public 4,824 2,996 4,586
Financial assets 5,119 1,076 3,469
Financial assets - policy holders bearing the risk 15,424 9,688 11,866
Tangible and intangible assets 401 316 455
Other assets 881 389 994
Total assets 27,505 17,944 23,754
Deposits and borrowing by the public 9,759 6,933 9,875
Liabilities to policyholders 15,424 9,688 11,869
Other liabilities 1,316 466 949
Shareholders' equity 1,005 858 1,036
Total liabilities and shareholders' equity 27,505 17,944 23,729
Capital requirements for the financial conglomerate (SEK million) 30/6/2010 31/12/2009
Shareholder's equity, Group 1,005.1 1,036.4
Plus conv ertible loan 100.0 -
Less div idend for the 2009 financial year - -83.8
Less assumed div idend for the 2010 financial year -43.1 -
Less intangible fixed assets and deferred tax receiv ables -370.7 -416.3
Capital base 691.4 536.3
Capital requirement for regulated units within the banking and securities sector 447.2 447.8
Theoretical solv ency requirement for non-regulated units in the largest financial sector 2.9 2.2
Capital requirement for regulated units within the insurance sector 24.7 23.5
Capital requirement 474.8 473.5
Capital surplus 216.6 62.8
Capital coverage ratio 1.46 1.13
Konsumentkredit
• A strategic element in the banking business development
• Adding expertise within risk assessment, sales and administration of
loan products
• 20,000 customers, lending of SEK 1.4bn
• Will remain a separate company and brand
• Purchase price SEK 250m
• Expected PTP increase of approx. SEK 6-7m a month
• Expected EPS increase of approx. SEK 0.30-0.35 a year
• Conditional on approval from FSA (FI) & EGM
A strategic element in the bank
Mortgages
Salary
accounts
Savingsaccounts
Bank cards
Mobile
banking
services
Loans
Outlook
• Continued market concern may make savers adopt a more
cautious approach to the stock market
• Continued focus on banking services
• A range of banking services in Sweden by year-end
• More mobile services to come
• Luxembourg phasing out to be completed in Q3
• Savers will continue to look for alternatives to the Jurassic
Banks
Financial objectives
• 100% cost coverage from other income than trading
commision at the end of 2011
• Double the revenues from levels of 2007 while maintaining a
high operating margin within 2-3 years
Vision
• To become the leading bank for savings in the Nordic
countries by 2018
Large potential
Nordnet’s potential client base
25 million people in the Nordic region
10 million save in shares and mutual funds
Nordnet’s existing clients 2010